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Dominican Republic Personal Tax Guide 2026

The Dominican Republic applies progressive Impuesto Sobre la Renta (ISR) rates on individual income: 0% up to DOP 416,220 per year, 15% on DOP 416,221–624,329, 20% on DOP 624,330–867,123, and 25% above DOP 867,123. Brackets are adjusted annually for inflation. The tax authority is the Dirección General de Impuestos Internos (DGII).

ISR Tax Brackets 2026

Dominican Republic taxes individual income on a calendar-year basis using progressive brackets. Employers withhold ISR from salaries monthly (Retención ISR). The tax year runs January to December.

  • 0%: Up to DOP 416,220 per year (DOP 34,685 per month)
  • 15%: DOP 416,221 – DOP 624,329 per year
  • 20%: DOP 624,330 – DOP 867,123 per year
  • 25%: Above DOP 867,123 per year

Example: An employee earning DOP 80,000 per month (DOP 960,000/year) pays: 0% on the first DOP 416,220, 15% on the next DOP 208,109 (DOP 31,216), 20% on the next DOP 242,793 (DOP 48,559), and 25% on the remaining DOP 92,878 (DOP 23,220). Total annual tax: approximately DOP 102,995.

TSS Social Security Deductions

Employee contributions to the Tesorería de la Seguridad Social (TSS) are mandatory and deductible from taxable income. For 2026, total employee contribution is approximately 7.25% of gross salary, subject to contribution ceilings.

  • AFP (Administradora de Fondos de Pensiones): 2.87% — mandatory pension contribution
  • SFS (Seguro Familiar de Salud): 3.04% — health insurance contribution
  • Labor risk (Riesgos Laborales): 0.5% — workplace accident insurance
  • IDSS: 0.84% — social insurance fund

These contributions reduce your taxable salary before ISR is calculated. Employers also contribute approximately 11.99% (AFP 7.09%, SFS 2.93%, labor risk 1.12%, IDSS 0.84%, INFOTEP 1%, SFS solidarity 0.4%).

Allowable Deductions

Individual taxpayers can further reduce taxable income through:

  • TSS contributions: Fully deductible from gross salary
  • Medical expenses: Documented healthcare costs for the taxpayer and dependents
  • Education expenses: Tuition and related costs up to DGII-prescribed limits
  • Life insurance premiums: Deductible within limits
  • Mortgage interest: Interest on loans for primary residence
  • Charitable donations: Contributions to registered nonprofit organisations

Filing Requirements

Individuals must file an annual ISR return (Formulario IR-1) if their gross income exceeds the DOP 416,220 threshold. Filing is done electronically through the DGII portal (dgii.gov.do). The deadline is March 31 of the following year. Late filing penalties range from 10% to 50% of the tax due, plus monthly interest surcharges.

Employers are required to issue a Certificado de Retención ISR (Formulario IR-17) summarising salary and tax withheld, which employees use to prepare their annual return.

Disclaimer

This guide provides general information about Dominican Republic personal income tax for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Dominican tax advisor or the DGII directly for advice specific to your situation. InvestmentKit does not provide tax advice.

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